Envela (US:ELA)2019-11-13 21:02Revenue Growth - Revenues for DGSE's retail continuing operations increased by $2,993,532 or 22% to $16,652,927 for the three months ended September 30, 2019, compared to $13,659,395 in the same period in 2018[93] - Revenues related to DGSE increased by $10,802,563, or 27%, to $51,251,093 for the nine months ended September 30, 2019, compared to $40,448,530 in the same period in 2018[106] - Echo Entities generated revenues of $6,208,274, with recycled material sales accounting for 83% at $5,133,181[94] Sales Performance - Jewelry, Bullion/Rare Coin, and Scrap sales increased by 9%, 18%, and 93%, respectively, compared to the prior year quarter[93] - The price of gold rose to $1,485 per ounce by September 30, 2019, contributing to increased sales velocity[89] Profitability - Gross profit for DGSE's operations decreased by $458,317 to $2,018,852, with a gross profit margin of 12.1% compared to 18.1% in the same period last year[95] - Gross profit for DGSE decreased by $662,492, or 9%, to $6,507,162, with a gross margin of 12.7% compared to 17.7% in the prior year[108] - The overall profit margin for Echo Entities was 51.0% on $6,208,274 in sales[97] - The Echo Entities generated a profit margin of 50.0% on sales of $8,567,075 for the nine months ended September 30, 2019[110] Expenses Management - Selling, General and Administrative expenses decreased by $990,766 or 35% to $1,868,144 compared to $2,858,911 in the same period in 2018[98] - SG&A expenses for DGSE decreased by $1,188,776, or 18%, to $5,484,082, primarily due to a note receivable write-off[111] - Interest expense increased by $8,664 or 23% to $46,764 due to the payoff of accounts payable related party[102] - Interest expense for DGSE decreased by $23,660, or 18%, to $106,970, attributed to the pay down of accounts payable[114] Net Income - Net income per share for the three months ending September 30, 2019, was $0.04, an increase of $0.06 per share compared to ($0.02) in the same period in 2018[105] - Net income for basic and diluted shares attributable to common stockholders was $0.08 per share for the nine months ended September 30, 2019, compared to $0.00 per share in the prior year[117] Cash Flow - Cash flows used in operating activities totaled $2,732,488 for the nine months ended September 30, 2019, an increase of $2,117,637 from the previous year[118] - Cash flows used in investing activities increased by $5,848,371 to $6,024,506, primarily due to the Echo Transaction[120] - Cash flows provided in financing activities totaled $9,858,432, an increase of $9,856,080 from the previous year, mainly from the acquisition of the Echo Transaction[121] Future Outlook - The company aims to enhance efficiency in processing recyclable materials and explore new applications for recycled electronic material[91] - Capital expenditures are expected to total approximately $85,000 over the next twelve months, primarily for the new point-of-sale system[122]